EURCHF Signals Reversal with Double Top Chart Pattern

EURCHF Analysis – April 19

EURCHF encountered substantial selling pressure at the resistance zone of 0.98420, culminating in a pivotal moment for market dynamics. Despite a sustained rally since the year’s inception, buyers faltered in breaching the supply zone, marking a significant shift in sentiment.

EURCHF Key Levels

Demand Levels: 0.9680, 0.9479
Supply Levels: 0.9840, 1.0000

Long-Term Trend: Bearish

At the onset of the year, the Relative Strength Index (RSI) dipped into oversold territory, signalling exhaustion among bears and paving the way for a bullish resurgence. The break of the bearish trendline underscored a notable trend reversal, buoyed by the emergence of a double-bottom bullish reversal pattern. However, the ascent, supported by a bullish trendline since January, has now reached a standstill.

The RSI, indicative of an overbought market, precipitated a downturn below the supporting trendline, signalling a reversal to a bearish trajectory. Furthermore, the formation of a double-top pattern, notably below the resistance at 0.98420, corroborates this shift. During this pattern formation, the Average Directional Index (ADX) markedly diminished, highlighting a lack of upward trend continuity.

Short-Term Trend: Bearish

As the daily trend indicates a reversal, a new bearish trend has firmly taken shape in the 4-hour timeframe. The best forex signals telegram channels anticipated price action suggests a descent towards the next support level at 0.968560, reflecting a continuation of bearish sentiment in the short term.

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